Advice on childcare vouchers

[seeminglyso]

Hi there,

Can anyone tell me if they feel this scheme is worth taking part in? Do all nurseries accept them? What are the pros and cons? I plan to go back to work 3 days a week so should I apply for the maximum amount of 234 pounds per month of my salary?

Any advice gratefully received thanks.

Hi

I'm going to take advantage of them. Looked at the savings calculator and it means a £900 saving over the year. My work have it written that if the nursery don't take part they will contact them and explain the procedure, but the majority of nurseries take part. It works out for me I get 12 months for the price of 10 so definately up for it.

From what I can gather they have a 10 year date as well so if you don't use them straight away you can save them. If you are planning to start it the rules are changing in April and so people are being advised to take it up sooner rather than later.

The way I look at it I have paid my tax and national insurance for all these years I may as well use it to my advantage. £900 is a lot of nappies!

Yes this is what I heard about the rules changing but I dont go back to work until November so i am wondering if I can even apply now and still gain these benefits?

Sparkle is your work putting a cap on how much you can have as my Local authority do?

I have never had a problem paying nursaries, registered child minders, or pre-prep school fees with child care vouchers.

There can be a conflict between working tax credits and child care vouchers. Higher income earners tend to be better off claiming childcare vouchers, lower income tends to be better off claiming tax credits. The "better off calculator is available here

www.hmrc.gov.uk/childcare/interaction-tc-cv.htm

I claim and so does my DH. We don't have any tax credits and save about £2K a year which is brilliant. Easy to use and most places take them.

Thanks ladies that is a helpful link too.

Yes even if u go back in nov u can start paying in now. This is esp important if u're a higher rate tax payer as anyone not in the scheme by april will have lower tax savings.

My employer has put a cap of £220 per 4 weekly pay period. All helps I suppose. Hmm, have to look at the calculator thing now!

Does anyone know if the change in the scheme come into effect from April 1st or later on in the month?

sparkle101 - £220 is awfully close to the £224 limit you would be allowed by the government for 4 weeks

It's 243 pcm so about £56 a week

I think it's the 6th offline, but iirc it's only for high tax payers (I may be wrong on that though)

Thanks Cosmosis. That makes sense.